Question 1

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Accepted Answer

A)   affects only income statement accounts.
B)   is not an acceptable practice.
C)   affects only balance sheet accounts.
D)   affects both balance sheet and income statement accounts.E) All of the above
F) None of the above

Question 2

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Accepted Answer

A) True 
 B)False

Question 3

Discuss the two methods for recording bad-debt expense. What type of company uses each method?

Accepted Answer

The first method is the direct write-off...

Question 4

The maturity value of a note receivable is always the same as its face value.

Accepted Answer

A) True 
 B)False

Question 5

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)   debit to Allowance for Doubtful Accounts for $3,200.
B)   debit to Bad Debt Expense for $3,200.
C)   debit to Allowance for Doubtful Accounts for $4,000.
D)   credit to Allowance for Doubtful Accounts for $4,000.E) B) and C)
F) A) and D)

Question 6

Receivables not currently collectible are reported in the investments section of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 7

Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.

Accepted Answer

A) True 
 B)False

Question 8

Accounts Receivable Turnover measures

Accepted Answer

A)   how frequently during the year the accounts receivable are converted to cash
B)   the number of days of accounts receivable outstanding
C)   the fair market value of accounts receivable
D)   the efficiency of the accounts payable functionE) B) and C)
F) All of the above

Question 9

On the basis of the following data related to assets due within one year for Webb Co., prepare a partial balance sheet in good form at December 31, 2014. Show total current assets.

Accepted Answer

The answer of On the basis of the following data...

Question 10

Allowance for Doubtful Accounts has a credit balance of $1,300 at the end of the year (before adjustment) . The company prepares an analysis of customers' accounts to estimate the amount of uncollectible accounts of $41,900. Which of the following adjusting entries would be made to record the Bad Debt Expense for the year?

Accepted Answer

A)   debit Allowance for Doubtful Accounts, $40,600; credit Bad Debt Expense, $40,600
B)   debit Allowance for Doubtful Accounts $43,200; credit Bad Debt Expense, $43,200
C)   debit Bad Debt Expense, $43,200; credit Allowance for Doubtful Accounts, $43,200
D)   debit Bad Debt Expense, $40,600; credit Allowance for Doubtful Accounts, $40,600E) None of the above
F) A) and C)

Question 11

The term "receivables" includes all

Accepted Answer

A)   money claims against other entities.
B)   merchandise to be collected from individuals or companies.
C)   cash to be paid to creditors.
D)   cash to be paid to debtors.E) None of the above
F) All of the above

Question 12

When referring to a note receivable or promissory note

Accepted Answer

A)   the maker is the party to whom the money is due.
B)   the note is not considered a formal credit instrument.
C)   the note cannot be factored to another party.
D)   the note may be used to settle an accounts receivable.E) B) and C)
F) All of the above

Question 13

Discuss the similarities and differences between accounts receivables, notes receivables and other receivables.

Accepted Answer

Accounts receivables result from the sal...

Question 14

The difference between the balance in Accounts Receivable and the balance in the Allowance for Doubtful Accounts is called the net realizable value.

Accepted Answer

A) True 
 B)False

Question 15

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?

Accepted Answer

A)   direct write-off method
B)   percentage of sales method
C)   Analysis of receivables method
D)   both (b)  and (c) E) A) and B)
F) A) and C)

Question 16

A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. The face value of the note is

Accepted Answer

A)   $6,860
B)   $7,140
C)   $7,840
D)   $7,000E) B) and C)
F) B) and D)

Question 17

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Accepted Answer

The answer of Lone Star Company received a 90-day, 6%...

Question 18

Discuss the (1) focus and (2) financial statement emphasis of (a) the percent of sales and (b) the analysis of receivables methods of estimating bad debts.

Accepted Answer

(a) Bad debt expense is the focus of the...

Question 19

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

Accepted Answer

A)   debit Bad Debt Expense, $600; credit Allowance for Doubtful Accounts, $600
B)   debit Bad Debt Expense, $12,400; credit Allowance for Doubtful Accounts, $12,400
C)   debit Allowance for Doubtful Accounts, $600; credit Bad Debt Expense, $600
D)   debit Bad Debt Expense, $13,600; credit Allowance for Doubtful Accounts, $13,600E) A) and C)
F) C) and D)

Question 20

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Accepted Answer

A)   debit to Bad Debt Expense for $8,600.
B)   debit to Bad Debt Expense for $7,900.
C)   debit to Bad Debt Expense for $7,200.
D)   credit to Allowance for Doubtful Accounts for $700.E) A) and B)
F) None of the above

Exam 8: Receivables

Discuss the similarities and differences between accounts receivables, notes receivables and other receivables.

Correct Answer
verified
Accounts receivables result from the sal...
View Answer

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct Answer
verified

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Correct Answer
verified

Correct Answer
verified

When referring to a note receivable or promissory note

Correct Answer
verified

On the basis of the following data related to assets due within one year for Webb Co., prepare a partial balance sheet in good form at December 31, 2014. Show total current assets.

Correct Answer
verified

Receivables not currently collectible are reported in the investments section of the balance sheet.

Correct Answer
verified

A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. The face value of the note is

Correct Answer
verified

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

Correct Answer
verified

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct Answer
verified

The term "receivables" includes all

Correct Answer
verified

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?

Correct Answer
verified

The maturity value of a note receivable is always the same as its face value.

Correct Answer
verified

Discuss the two methods for recording bad-debt expense. What type of company uses each method?

Correct Answer
verified
The first method is the direct write-off...
View Answer

The difference between the balance in Accounts Receivable and the balance in the Allowance for Doubtful Accounts is called the net realizable value.

Correct Answer
verified

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Correct Answer
verified

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Correct Answer
verified

Accounts Receivable Turnover measures

Correct Answer
verified

Discuss the (1) focus and (2) financial statement emphasis of (a) the percent of sales and (b) the analysis of receivables methods of estimating bad debts.

Correct Answer
verified
(a) Bad debt expense is the focus of the...
View Answer

Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.

Correct Answer
verified

Exam 8: Receivables

Discuss the similarities and differences between accounts receivables, notes receivables and other receivables.

Correct AnswerverifiedAccounts receivables result from the sal...View AnswerShow Answer

An aging of a company's accounts receivable indicates the estimate of uncollectible receivables totals $7,900. If Allowance for Doubtful Accounts has a $700 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct AnswerverifiedShow Answer

Lone Star Company received a 90-day, 6% note for $80,000, dated March 12 from a customer on account. (Assume a 360-day year when calculating interest.)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

When referring to a note receivable or promissory note

Correct AnswerverifiedShow Answer

On the basis of the following data related to assets due within one year for Webb Co., prepare a partial balance sheet in good form at December 31, 2014. Show total current assets.

Correct AnswerverifiedShow Answer

Receivables not currently collectible are reported in the investments section of the balance sheet.

Correct AnswerverifiedShow Answer

A 60-day, 12% note for $7,000, dated April 15, is received from a customer on account. The face value of the note is

Correct AnswerverifiedShow Answer

Allowance for Doubtful Accounts has a debit balance of $600 at the end of the year (before adjustment) , and an analysis of accounts in the customers ledger indicates uncollectible receivables of $13,000. Which of the following entries records the proper adjusting entry for bad debt expense?

Correct AnswerverifiedShow Answer

An aging of a company's accounts receivable indicates that estimate of the uncollectible accounts totals $4,000. If Allowance for Doubtful Accounts has a $800 credit balance, the adjustment to record the bad debt expense for the period will require a

Correct AnswerverifiedShow Answer

The term "receivables" includes all

Correct AnswerverifiedShow Answer

In accounting for uncollectible receivables, the balance in Allowance for Doubtful Accounts will directly impact the amount of the adjustment when applying which method?

Correct AnswerverifiedShow Answer

The maturity value of a note receivable is always the same as its face value.

Correct AnswerverifiedShow Answer

Discuss the two methods for recording bad-debt expense. What type of company uses each method?

Correct AnswerverifiedThe first method is the direct write-off...View AnswerShow Answer

The difference between the balance in Accounts Receivable and the balance in the Allowance for Doubtful Accounts is called the net realizable value.

Correct AnswerverifiedShow Answer

Both Accounts Receivable and Notes Receivable represent claims that are expected to be collected in cash.

Correct AnswerverifiedShow Answer

Under the allowance method of accounting for uncollectible receivables, writing off an uncollectible account.

Correct AnswerverifiedShow Answer

Accounts Receivable Turnover measures

Correct AnswerverifiedShow Answer

Discuss the (1) focus and (2) financial statement emphasis of (a) the percent of sales and (b) the analysis of receivables methods of estimating bad debts.

Correct Answerverified(a) Bad debt expense is the focus of the...View AnswerShow Answer

Of the two methods of accounting for uncollectible receivables, the allowance method provides in advance for uncollectible receivables.

Correct AnswerverifiedShow Answer

Correct Answer
verified
Accounts receivables result from the sal...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The first method is the direct write-off...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
(a) Bad debt expense is the focus of the...
View Answer

Correct Answer
verified